BrokerPulse

RealTrends Q32021 BrokerPulse sees brokers still optimistic about the market, wary of competition and wondering when inventory will rise.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Knock.com’s Sean Black on the transaction revolution

Real estate is on its third revolution, from the digital revolution of the early 2000s to the information revolution kicked off by Trulia and Zillow to today's transaction revolution.

Newsletter

The RealTrends BrokerSource and HousingWire OpenHouse newsletters deliver twice weekly information on trends, strategies, analysis, people, and news shaping the real estate industry.

Luxury Rentals Are On The Rise

Luxury Rentals Rising

We’ve already shown that new apartment construction in the US saw a 6-year period of strong development. But what kind of units entered the market during this time? According to our latest study, most of the new apartments delivered were luxury rentals.

In fact, while apartment construction overall slowed down, the high-end apartment construction segment comprised ever-larger chunks of the total large-scale developments completed each year, from 52% in 2012 to 79% in 2017. And it looks as if this year will go even higher: 87% of the buildings completed in the first half of 2018 were high-end.

luxury rentals

Here are more key findings regarding luxury rentals:

  • Out of the nation’s 30 largest cities, 16 are getting exclusively high-end new rentals in 2018, a significant increase compared to last year, when just 6 cities saw nothing but luxury apartments entering the market.
  • Pricey San Francisco, LA, Denver, and Chicago are on 2018’s list along with more affordable markets like Jacksonville, Detroit, and Charlotte.
  • At a metro level, 6 of the 30 most populous US metros completed only luxury apartments in the first half of 2018: Dallas – Fort Worth, Houston, Kansas City, Charlotte, and Cleveland. Last year, there were only two metro areas where this happened: St. Louis and Las Vegas.
  • Zooming out, we noticed a strong swing towards luxury apartments in the Southwest and Mid-Atlantic as developers here built an impressive 88% and 87% respectively of apartments as high-end in 2017. At the other end of the spectrum were California and the Pacific Northwest with the lowest shares of high-end apartment construction, 64% and 69% respectively.
  • Which cities have the largest shares of high-end rental stock to date? Charlotte ranks first as half of its apartment buildings are classified as luxury. Nationwide, the share of high-end residential properties with 50 units or more clocked in at 23% this year.

luxury rentals

Check out the full study for interactive infographics.

Most Popular Articles

REX undergoes second round of layoffs

REX Homes, the discount brokerage behind an anti-trust lawsuit against Zillow and the NAR, announced its second round of layoffs late last week.

Oct 11, 2021 By

Latest Articles

Millennials struggle to compete with boomers for homes

Young people make up a smaller share of recent homebuyers than in previous years, most likely due to the increased market activity of baby boomers, a new Zillow housing market study found.

Oct 15, 2021 By